CorpFin HW1

# CorpFin HW1 - (11,750) (30,000) Federal Income Tax...

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Problem 1-3 Sales- 3,000,0000 Cost of goods sold- (2,000,000) Gross Profit 1,000,000 Operating Expenses- ( 400,000) Operating Income- 600,000 Depreciation- ( 100,000) Loan Interest- ( 150,000) Dividend Income- (50,000) Paid Dividends- (25,000) Taxable Income- 275,000 Tax Computation (15% x \$50,000) (7,500) (25% x \$25,000) (6,250) (34% x \$261,250) (88,825) Surtax- (13,750) Federal Income Tax Liability- 116,325 Problem 1-13 Taxable Income- 20,000,000 Tax Computation (15% x \$50,000) (7,500) (25% x \$25,000) (6,250) (34% x \$9,925,000) (3,374,500) (35% x \$10,000,000) (3,500,000) Surtax-

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Unformatted text preview: (11,750) (30,000) Federal Income Tax Liability 6,930,000 Problem 1-14 Taxable Income- 19,000,000 Tax Computation (15% x \$50,000) (7,500) (25% x \$25,000) (6,250) (34% x \$9,925,000) (3,374,500) (35% x \$9,000,000) (3,150,000) Surtax-(11,750) (30,000) Federal Income Tax Liability 6,580,000 Taxable Income- 29,000,000 Tax Computation (15% x \$50,000) (7,500) (25% x \$25,000) (6,250) (34% x \$9,925,000) (3,374,500) (35% x \$19,000,000) (6,650,000) Surtax-(11,750) (30,000) Federal Income Tax Liability 10,080,000...
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## This note was uploaded on 09/16/2008 for the course FIN 3104 taught by Professor Ajkeown during the Fall '07 term at Virginia Tech.

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CorpFin HW1 - (11,750) (30,000) Federal Income Tax...

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